Facebook shares drop 4% as Wall Street resumes in the wake of Hurricane Sandy
Wall Street resumed today after a two-day closure due to Hurricane Sandy, allowing Facebook employees the first chance to sell some of the 234 million shares which had been in ‘lock-up’.
The first of the three post-IPO lock ups officially expired on Monday, however the weather meant that those looking to sell their shares had to wait an extra two days.
Within hours of the market opening on Wednesday stock fell four per cent before rising slightly to $21.04, 3.5 per cent lower than close on Friday ($21.94) and nearly 50 per cent lower than the May offering price of $38.
This could be a sign of things to come for Facebook, who still have over 900 million shares in holding. The second lock-up will expire on November 14, freeing a further 777 million shares, and a month later 156 million will be eligible for sale.
Back in August 271 million shares came out of lock-up, with the likes of PayPal co-founder and early Facebook investor Peter Thiel, selling the majority of his stock, resulting in share prices hitting a record low.